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Dollar at 12-Week Low on Trump Worries, Sterling Gains on Eased Brexit Fears

Dollar Or Pound Sterling, Usd/gbr Balance Concept

The dollar regained some ground on Friday ahead of the jobs report due later in the day, but still had its worst week in 12 weeks. The currency is struggling on fears of a Donald Trump presidency, as the polls tighten ahead of election day.

The greenback fell 1.2% against other major currencies.

Expectations of a rate cut in December pushed the dollar higher last week, but recent controversy over new Clinton emails sent the currency dipping as polls tightened.

Against the yen, the dollar was flat at 103.080 after falling to a one-month low of 102.55 Thursday. The U.S. currency has dipped over 1.6% in the last week, as safe havens like the yen and Swiss franc benefited from fears of a Trump presidency.

The euro was slightly weaker against the dollar, trading at 1.1096. AUD/USD was little changed at 0.7681, and the New Zealand dollar was down 0.22% to 0.7316 against its U.S. counterpart.

Early Friday, the Australian Bureau of Statistics reported that retail sales were up by 0.6% in September. Economists were projecting a 0.4% gain.

Meanwhile, sterling hit a four-week high and is on track for its best week since March. The pound has rebounded 2.5% against the greenback, benefiting from the High Court ruling that Prime Minister cannot pull the trigger on Article 50 without parliamentary approval.

The currency regained ground earlier in the week after Mark Carney, Bank of England head, said he would remain in his position for another year to help with the Brexit negotiations.

Sterling was further boosted by news that the Bank of England has decided not to move forward with its plans to cut rates and raised its growth and inflation forecasts for 2017.

Despite recent gains, the pound is still 16% lower against the dollar and 14% weaker against the euro.